Paritech plans for further traction in the self-managed superannuation fund (SMSF) sector following its recent acquisition of PhoenixAL’s market data and trading platform.
Paritech director Rick Klink told InvestorDaily that the company is actively working with another four groups to build partnerships.
He said Paritech is interested in self-directed SMSFs – people who value their independence.
“What we’re doing now is mopping up all the [companies] where, from a critical mass point of view, they are just not viable and who knows the downturn is still going to be, in terms of when people are interested again,” he said.
“We’re not looking to outsell [the larger players]. What we’re looking at is more unique partnering in terms of getting this out there in front of clients.”
The firm’s focus remains on retail clients, such as the self-directed SMSF clients, and to provide them the tools that they need so they do not need a stockbroker, he said.
“The focus right now is to continue consolidating those guys and to continue growing our direct distribution to retail clients with more advanced tools than what they get directly from the current stockbroking environment and more and more engineering in that area,” he said.
“A lot of them out there right now are looking for an independent operation. We’re in discussions with quite a few right now in terms of getting some scale, they’re looking for a truly independent player who can provide the same scale and reliability but won’t conflict with their [own operations].”
On Monday, Paritech announced it had acquired PhoenixAL’s market date and trading platform, which it planned to merge with its own.
The additional business is expected to boost Paritech’s revenue by $1 million per year.
“We will immediately start marketing the software to our current stockbroker and trading clients,” Klink said at the time.
“In addition, Paritech will transfer the current users of PhoenixAL on to our market data and trading infrastructure, thereby driving considerable cost savings in the group.”
